Lord Abbett Introduces Inflation Focused Fund

JERSEY CITY, N.J., May 2, 2011—Lord, Abbett & Co. LLC ("Lord Abbett"), an independent, privately held investment management firm, today announced the launch of the Lord Abbett Inflation Focused Fund (LIFAX). Specifically designed for investors concerned about the impact of inflation on future purchasing power, the newest addition to Lord Abbett's taxable fixed income product line seeks to deliver a positive total return in an inflationary environment.

The Inflation Focused Fund's investment strategy utilizes a distinctive combination of short-term credit instruments and inflation-linked investments in an effort to deliver investment returns that exceed the rate of inflation over a full economic cycle.

"With inflation concerns increasingly on the minds of our clients and business partners, we wanted to provide a product that seeks to deliver positive returns in an inflationary environment while helping to guard investors during periods of rising interest rates," said Daria Foster, Lord Abbett Managing Partner. "We believe this is a competitive solution that provides a shorter duration, higher yield, and lower expenses compared to many of the other inflation-protected products currently available in the market."

The Fund will be managed by a seasoned group of Lord Abbett investment professionals. Robert A. Lee, Partner & Director of Taxable Fixed Income, will oversee the portfolio management team of Andrew H. O'Brien, Partner, and Kewjin Yuoh. In addition, the team will be supported by 21 investment professionals who have an average of 14 years of investment experience.

Lord Abbett has been managing taxable fixed-income products for more than 80 years. Since 2007, the firm has implemented several changes to its taxable fixed-income product lineup to better meet client needs, including the introduction of both a bank loan fund and an emerging markets currency fund; the repositioning of existing products; and the reduction of expense ratios and sales charges. As a result, the firm has experienced notable growth in taxable fixed income assets from $21.5 billion on December 31, 2007 to $45.0 billion today (as of March 31, 2011).

For more information on the Fund and Lord Abbett's taxable fixed-income strategies, please visit https://www.lordabbett.com/advisor/mutualfunds/inflationfocused

About Lord Abbett

Lord, Abbett & Co. LLC is an independent, privately held firm with a singular focus on the management of money. As one of the oldest money management firms in the United States, Lord Abbett has consistently provided generations of clients and their financial advisors with a quality investment experience since 1929. Lord Abbett manages approximately $113.7 billion in assets (as of March 31, 2011) across a full range of mutual funds, institutional and separately managed accounts, including $3.3 billion for which Lord Abbett provides investment models to managed account sponsors.

A Note about Risk: Although the Fund invests in inflation-linked investments, there is no guarantee that the Fund will generate returns that exceed the rate of inflation in the U.S. over time. Among the inflation-linked investments used by the Fund are inflation-indexed derivatives, including Consumer Price Index (CPI) swaps. The success of the Fund's investment strategies will largely depend on the extent to which the Fund's portfolio management team correctly forecasts inflationary trends and expectations. During periods of deflation or when inflation is lower than anticipated, the Fund is likely to underperform funds that hold fixed-income securities similar to those held by the Fund, but do not hold inflation-linked investments. The Fund defines inflation by reference to the CPI for All Urban Consumers, which is a national average. Individual investors may have higher increases in the goods and services they consume, and the Fund may fail to provide returns that meet or exceed these increases. The Fund also is subject to risks associated with fixed-income investments and derivatives, such as credit risk, interest-rate risk, counterparty risk, and the risk that the Fund's derivative instruments move in an opposite direction than anticipated by the Fund.

Investors should carefully consider the investment objectives, risks, charges, and expenses of the Lord Abbett Funds. This and other important information is contained in the fund's summary prospectus and/or prospectus. To obtain a prospectus or summary prospectus on any Lord Abbett mutual fund, contact your investment professional or Lord Abbett Distributor LLC at 888-522-2388, or visit us at www.lordabbett.com. Read the prospectus carefully before investing.

Lord Abbett mutual fund shares are distributed by Lord Abbett Distributor LLC.

Shares of Lord Abbett mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, and are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of principal amount invested.

SOURCE Lord, Abbett & Co. LLC